Wholesaler BWG Group, which operates the Spar, Mace and Londis convenience chains in Ireland, has acquired some of the country’s best-known restaurant brands including O’Briens Cafe, Abrakebabra and Bagel Factory.
The company, which is owned by South African-incorporated Spar Group Ltd, said the acquisition marks its entry into the quick-service restaurant sector and adds to its position across the food-service market.
The terms of the transaction were not disclosed, but it is understood the value of the deal was in the region of €15 million to €20 million.
O’Briens, Abrakebabra and Bagel Factory will operate as a single entity subsidiary of BWG Group with the existing management teams staying on, working with current franchise partners while continuing to develop a pipeline of new franchisees.
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The acquired business operates a network of 72 locations nationwide, comprising 47 O’Briens and Bagel Factory outlets, 17 Abrakebabra restaurants and eight Oasis of Taste food halls, supported by more than 50 franchisee partners.
BWG plans to expand by 25 additional locations by 2030, bringing the network to almost 100 locations nationwide.
It said growth will be driven by increased geographical reach, enhanced digital ordering and delivery, and continued investment in new-product development.
BWG said it also sees an opportunity for the brands to play a “leadership role” in innovation within the Irish quick-service restaurant sector.
It said it will support the growth of O’Briens Café, Abrakebabra and Bagel Factory by leveraging the “scale, expertise and infrastructure” of the wider group.
“The business will benefit from access to BWG Group’s central services, including HR, IT, finance and trading, enabling efficient growth while maintaining the entrepreneurial strengths of the existing franchise model,” it said.
BWG said it views the quick-service restaurant sector as a “natural extension” of its existing activities and a “compelling long-term growth opportunity”, with the sector now accounting for approximately 37 per cent of the total food service market.
Spar Group first invested in the BWG business in 2014 when it paid €55 million for an 80 per cent stake to help BWG restructure boom-time property debts.
BWG’s brand portfolio includes more than 1,000 Spar, Eurospar, Londis, Mace and XL stores across the country.
The brands hold strong market positions and benefit from a broad footprint of strategically located sites across shopping centres, high streets and transport hubs, offering fast, convenient and premium food to consumers throughout Ireland.
BWG chief executive John Moane said he sees “significant opportunity” to build on the foundations of the brands, supported by their franchisee base.
“This sector has proven to be one of the most resilient and consistently growing areas of the Irish food-service market and this acquisition positions BWG strongly to participate in that growth,” he added.
